Venture capital investment earmarked for South Australian bioscience

A major venture capital investment of tens of millions of dollars is currently being secured for the South Australian bioscience industry.

Announced yesterday by the South Australian premier Mike Rann, who is currently attending BIO 2005 in the US, the long-term funding injection will be by way of a joint venture agreement with Bio Innovation SA. The details of the investor remain confidential at this stage.

Bio Innovation SA is a public corporation set up by the South Australian government in 2001 to coordinate investment in the state's bioscience community as well as advise on how to attract pre-seed and venture capital funding into the state.

"We are under a strict confidentiality agreement and cannot say anything before the official announcement," said Dr Jurgen Michaelis, CEO of Bio Innovation SA, who was also unable to disclose when the announcement would be made.

Michaelis said Bio Innovation SA was integral to securing the investment.

The premier said that negotiations were currently being finalised and he expected the details would be completed within the first quarter of the 2005/06 financial year.

The premier also said it has been proposed that a private equity fund will be established with the money, to which companies can apply for investment for their projects.

Bio Innovation SA's mission has been to create 50 new bioscience companies by 2010 -- 31 new biotech companies have arisen so far, bringing the number of bioscience companies in South Australia to more than 60.